Special Needs Planning & Trusts in Arizona

What is Special Needs Planning?

Special needs planning refers to the process of creating a comprehensive financial, legal, and care plan for individuals with special needs or disabilities. It involves addressing the unique challenges and considerations faced by individuals who may require long-term care, support, and accommodations throughout their lives.

The goal of special needs planning is to ensure that individuals with disabilities can maintain their quality of life, access necessary services and benefits, and have their financial and legal affairs properly managed. This type of planning typically involves collaborating with various professionals such as special needs attorneys, financial advisors, and social workers to develop a customized plan tailored to the individual's specific needs and circumstances.

Key aspects of special needs planning may include:

• Government benefits: Understanding and maximizing access to government benefits such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Medicaid, or Medicare to help cover medical expenses, long-term care, and other essential services.

• Financial planning: Developing strategies to provide financial security for the individual with special needs, while also ensuring their eligibility for government benefits. This may involve creating a special needs trust, setting up a structured settlement, or establishing guardianship.

• Estate planning: Creating a comprehensive estate plan that includes special provisions to protect and provide for the individual with special needs after the parents or caregivers have passed away. This may involve setting up a trust, appointing a guardian or trustee, and specifying instructions for the individual's care and financial management.

• Guardianship and decision-making: Determining the appropriate legal framework to ensure the individual's well-being and decision-making capacity, such as establishing guardianship, power of attorney, or healthcare proxies.

• Care coordination: Coordinating with healthcare providers, therapists, support organizations, and other professionals involved in the individual's care to ensure a comprehensive and integrated approach to meeting their needs.

• Transition planning: Assisting individuals with special needs in transitioning from childhood to adulthood, including planning for education, employment, independent living, and social integration.

Special needs planning requires a deep understanding of federal and state laws, as well as the unique challenges faced by individuals with disabilities and their families. By engaging in special needs planning, individuals and their families can have peace of mind knowing that their loved ones will be well-cared for and financially secure throughout their lives.

What are Special Needs Trusts?

Special needs trusts, also known as supplemental needs trusts, are legal arrangements that are designed to provide financial support to individuals with disabilities without jeopardizing their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). In Arizona, there are different types of special needs trusts, including:

1. First-Party Special Needs Trust: A first-party special needs trust is created with the assets of the person with disabilities. This type of trust is often used when a person with disabilities receives a large settlement or inheritance and needs to preserve their eligibility for government benefits.

2. Third-Party Special Needs Trust: A third-party special needs trust is created with the assets of someone other than the person with disabilities, such as a family member. This type of trust is often used as part of estate planning to provide for the long-term care of a loved one with disabilities.

3. Pooled Trust: A pooled trust is a type of trust that is managed by a nonprofit organization. Funds from multiple beneficiaries are pooled together for investment purposes, but each beneficiary has a separate account within the trust. Pooled trusts can be either first-party or third-party trusts.

Special needs trusts can be used to provide for a wide range of expenses, including housing, medical care, education, transportation, and other support services. The trustee of the trust is responsible for managing the assets and distributing them to the beneficiary in accordance with the terms of the trust.

It's important to work with an experienced attorney who stays current with the laws related to special needs planning to set up a special needs trust in Arizona. The attorney can help you understand the legal requirements for setting up the trust and ensure that it complies with federal and state laws. 

Emily R. Taylor is an attorney licensed by the State Bar of Arizona.  Emily Taylor practices in the areas of Special Needs Planning, Guardianships (and its alternatives), Estate Planning, and Special Needs Trusts.  The office of Emily R. Taylor, Attorney PLLC is located in Phoenix, Arizona.  Emily Taylor is available to consult on legal matters throughout the state of Arizona.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.  This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

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